{"id":28890,"date":"2024-12-13T06:00:58","date_gmt":"2024-12-13T14:00:58","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=28890"},"modified":"2025-05-28T06:56:32","modified_gmt":"2025-05-28T13:56:32","slug":"what-is-a-real-estate-commission","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/what-is-a-real-estate-commission\/","title":{"rendered":"What Is a Real Estate Commission? 5 Myths Busted for First-Time Sellers"},"content":{"rendered":"<p>If you\u2019ve <a href=\"https:\/\/www.homelight.com\/blog\/buyer-steps-to-buying-a-house\/\">purchased a home<\/a> before but have never sold one, you most likely haven\u2019t encountered real estate agent fees yet. Real estate fees \u2014 or <a href=\"https:\/\/www.homelight.com\/blog\/real-estate-agent-commission\/\">commissions<\/a> \u2014 are typically paid by the seller. So if you\u2019re getting ready to <a href=\"https:\/\/www.homelight.com\/blog\/how-to-sell-a-house\/\">sell your home<\/a>, you may be wondering: what is a real estate commission?<\/p>\n<p>Top real estate agent <a href=\"https:\/\/www.homelight.com\/agents\/amy-asivido-or-asividoa\">Amy Asivido Christman<\/a> of Oregon and Washington has over two decades of real estate experience. When it comes to real estate commissions, she has the answers. She also reveals five commission myths that often confuse first-time home sellers.<\/p>\n<p>\n\n\n\n\n<div class=\"geo-cta widget-cta widget-cta--content     widget-cta--dark widget-cta--dark-blue-gradient\">\n    <div class=\"widget-element--content\">\n        <div class=\"widget-element--content-header\">\n            <img decoding=\"async\" alt=\"homelight logo\" class=\"widget-element--logo\" src=\"https:\/\/www.homelight.com\/blog\/wp-content\/themes\/ccprototypev5\/images\/logo-small-cta.png\" width=\"106\" height=\"25\" \/>\n        <\/div>\n        \n                <h3 class=\"cta-headline widget--bold\">Find Your Perfect Real Estate Agent<\/h3>\n                        <p>We analyze over 27 million transactions and thousands of reviews to determine which agent is best for you based on your needs.<\/p>\n        \n                <div class=\"widget-element--buttons\">\n            <a data-type=\"In Content CTA\" href=\"https:\/\/www.homelight.com\/find-agent\/quiz\/seller?#\/qaas=0\/\" class=\"cta-click-track widget-element--button\">Find an Agent<\/a>\n        <\/div>\n                    <\/div>\n<\/div>\n\n <div id=\"section--1\" data-toc-header=\"What are agent fees and commissions?\" data-toc-type=\"head\"><\/div><\/p>\n<h2>What are agent fees and commissions?<\/h2>\n<p>A real estate commission is the <a href=\"https:\/\/www.homelight.com\/blog\/realtor-fees\/\">fee paid to real estate agents<\/a> for their services in helping to sell or buy a property. This fee is typically a percentage of the property&#8217;s final sale price, which can vary by region and market conditions.<\/p>\n<p>Christman estimates that most real estate commission fees are between 4 and 10% of the total sales price, but this number can vary greatly depending on your location and market conditions.<\/p>\n<p>Historically, the industry standard was 6%, split between the buyer\u2019s and seller\u2019s agents. Sellers typically <a href=\"https:\/\/www.homelight.com\/blog\/who-pays-real-estate-agent-commission\/\">covered these commission fees<\/a>, which are deducted from their total profit on the sale. <span style=\"font-weight: 400;\">However, in light of the recent National Association of Realtors <\/span><a href=\"https:\/\/www.homelight.com\/blog\/nar-lawsuit-settlement\/\"><span style=\"font-weight: 400;\">(NAR) lawsuit settlement<\/span><\/a><span style=\"font-weight: 400;\">, sellers <\/span>no longer have to offer a commission to the buyer\u2019s agent. Under the new commission structure, buyers are expected to negotiate directly with their agents.<\/p>\n<p>This change means sellers save money since they\u2019ll only be responsible for their listing agent\u2019s fee, usually around 3% of the home\u2019s sale price. However, in some cases, sellers might still need to offer a decent commission to attract buyers or speed up the home sale.<\/p>\n<p>As of writing, the <a href=\"https:\/\/www.nar.realtor\/research-and-statistics\">median home price in the U.S. is $407,200<\/a>. If you sell your home for this price, here are the commission costs you can expect:<\/p>\n<ul>\n<li aria-level=\"1\">If you pay both the listing and buyer\u2019s agent (6%), the total commission comes to $24,432.<\/li>\n<li aria-level=\"1\">If you only cover the listing agent commission (3%), your cost slides to $12,216.<\/li>\n<\/ul>\n<p>Commission rates tend to decrease in a seller\u2019s market since homes are selling for more than they normally do. Therefore, agents don\u2019t need to charge as high of a commission rate to make more money off a home sale. The latest data from August shows that the national <a href=\"https:\/\/www.housingwire.com\/articles\/real-estate-agent-commission-steady-redfin\/\">average real estate commission fell to 2.34%<\/a>.<\/p>\n<p>\u201cSo at the end of the day, what I think people need to know is that it\u2019s not important how much you pay in commission,\u201d Christman explains. \u201cIt\u2019s more important what you net. And the right agent will get you a higher price through better marketing, better negotiation, and the best exposure.\u201d While this amount might still seem high to some sellers, it\u2019s important to remember that your real estate agent is helping you <a href=\"https:\/\/www.homelight.com\/blog\/how-to-sell-your-home-for-more-money\/\">maximize your home sale profit<\/a>.<\/p>\n<p>Agents on the buyer and seller side both have various responsibilities that impact your home sale. Here are just some of the services agents offer that you may not know about.<\/p>\n<section class=\"building-block bb-type-default bb-agent-quote bg-none\" id=\"bb-1\"><div class=\"body block\"><div class=\"container-fluid\"><div class=\"block-content\">            <blockquote class=\"post-blockquote\">\n                <q>A lot of times, when I sit down and go over all the marketing that we do, they think it\u2019s all going to be extra in addition to <a href=\"https:\/\/www.homelight.com\/blog\/real-estate-agent-commissions\/\">the commission<\/a>. It\u2019s all included.<\/q>\n                                    <div class=\"contributors\">\n                        <ul class=\"list\">\n                            <li>\n                                <div class=\"inner\">\n                                    <div class=\"opener\">\n                                        <div class=\"avatar\">\n                                                                                            <img decoding=\"async\" src=\"https:\/\/media.homelight.com\/uploads\/agent\/picture\/1747558\/b1407154-d8f2-4b79-bd0e-33b298c6422c.jpeg?width=121\" alt=\"Amy Asivido\">\n                                                                                    <\/div>\n                                        <div class=\"info\">\n                                            <strong>Amy Asivido<\/strong>\n                                            <span>Real Estate Agent<\/span>\n                                        <\/div>\n                                    <\/div>\n\n                                    <div class=\"contributors-detail-modal\">\n                                        <div class=\"holder\">\n                                            <a href=\"#\" class=\"icon-close close\">\n                                                <span class=\"screen-reader-text\">Close<\/span>\n                                            <\/a>\n                                            <div class=\"top\">\n                                                <div class=\"avatar\">\n                                                                                                            <img decoding=\"async\" src=\"https:\/\/media.homelight.com\/uploads\/agent\/picture\/1747558\/b1407154-d8f2-4b79-bd0e-33b298c6422c.jpeg?width=121\" alt=\"Amy Asivido\">\n                                                                                                    <\/div>\n                                                <div class=\"info\">\n                                                    <strong>Amy Asivido<\/strong>\n                                                                                                            <span>Real Estate Agent at Keller Williams Premier Partners<\/span>\n                                                                                                        <div class=\"rating\">\n                                                                                                                    <span>5.0<\/span>\n                                                            <ul class=\"star-list inline-list\">\n                                                                                                                                    <li>\n                                                                        <img decoding=\"async\" src=\"https:\/\/www.homelight.com\/blog\/wp-content\/themes\/ccprototypev5\/images\/star-solid.svg\" width=\"16\" alt=\"star\">\n                                                                    <\/li>\n                                                                                                                                    <li>\n                                                                        <img decoding=\"async\" src=\"https:\/\/www.homelight.com\/blog\/wp-content\/themes\/ccprototypev5\/images\/star-solid.svg\" width=\"16\" alt=\"star\">\n                                                                    <\/li>\n                                                                                                                                    <li>\n                                                                        <img decoding=\"async\" src=\"https:\/\/www.homelight.com\/blog\/wp-content\/themes\/ccprototypev5\/images\/star-solid.svg\" width=\"16\" alt=\"star\">\n                                                                    <\/li>\n                                                                        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                                             <\/div>\n                                                                                                    <\/div>\n                                            <\/div>\n                                                                                            <div class=\"btm\">\n                                                    <ul class=\"exp-list inline-list\">\n                                                                                                                    <li>\n                                                                <span>Years of Experience<\/span>\n                                                                <strong>24<\/strong>\n                                                            <\/li>\n                                                                                                                    <li>\n                                                                <span>Transactions<\/span>\n                                                                <strong>1419<\/strong>\n                                                            <\/li>\n                                                                                                                    <li>\n                                                                <span>Average Price Point<\/span>\n                                                                <strong>$424k<\/strong>\n                                                            <\/li>\n                                                                                                                    <li>\n                                                                <span>Single Family Homes<\/span>\n                                                                <strong>1281<\/strong>\n                                                            <\/li>\n                                                                                                            <\/ul>\n                                                <\/div>\n                                                                                    <\/div>\n                                    <\/div>\n                                <\/div>\n                            <\/li>\n                        <\/ul>\n                    <\/div>\n                            <\/blockquote>\n        <\/div><\/div><\/div><\/section>\n<div id=\"section--2\" data-toc-header=\"What services do real estate agent commissions cover?\" data-toc-type=\"head\"><\/div>\n<h2>What services do real estate agent commissions cover?<\/h2>\n<h3>Seller\u2019s agent services<\/h3>\n<ul>\n<li><strong>Prepping and presenting the house<\/strong><\/li>\n<\/ul>\n<p>As a seller, it\u2019s vital to put the best possible version of your house on display. Many seller\u2019s agents provide <a href=\"https:\/\/www.homelight.com\/blog\/how-to-take-real-estate-photos\/\">professional photography<\/a> and <a href=\"https:\/\/www.homelight.com\/blog\/home-staging-tips-first-timers\/\">staging<\/a> at no extra cost to their clients. Christman, for example, has a professional she hires to help the sellers pack up their belongings for an easier sale process.<\/p>\n<p>Additionally, if you need work done to the house to pass <a href=\"https:\/\/www.homelight.com\/blog\/how-home-inspection-works\/\">inspection<\/a>, like electrical or plumbing repairs, seller\u2019s agents will often <a href=\"https:\/\/www.homelight.com\/blog\/home-repair-contractors\/\">connect you with the best contractors<\/a>.<\/p>\n<p>\u201cThe contractors we work with are tried and true. We trust them,\u201d Christman explains. \u201cWe know they do good work and they\u2019re very competitive with their pricing. All of that together equals more money in the seller\u2019s pocket.\u201d<\/p>\n<ul>\n<li><strong>Marketing the house<\/strong><\/li>\n<\/ul>\n<p>On top of the photography and staging, seller\u2019s agents <a href=\"https:\/\/www.homelight.com\/blog\/creative-real-estate-listing-descriptions\/\">write the listing<\/a> and post it on the industry\u2019s <a href=\"https:\/\/www.homelight.com\/blog\/what-is-the-mls\/\">multiple listing service (MLS)<\/a>. The exposure a seller\u2019s agent provides often leads to more \u2014 and higher \u2014 bids.<\/p>\n<p>\u201cA lot of times, when I sit down and go over all the marketing that we do, they think it\u2019s all going to be extra in addition to <a href=\"https:\/\/www.homelight.com\/blog\/real-estate-agent-commissions\/\">the commission<\/a>,\u201d Christman says. \u201cIt\u2019s all included.\u201d<\/p>\n<ul>\n<li><strong>Working with the appraiser<\/strong><\/li>\n<\/ul>\n<p>Sometimes, a house <a href=\"https:\/\/www.homelight.com\/blog\/will-my-house-appraise-for-selling-price\/\">appraises for less than the final sale price<\/a>. This puts the seller and the buyer in an unfortunate spot because most lenders will not provide a loan larger than the appraised value.<\/p>\n<p>Seller\u2019s agents work directly with appraisers to provide <a href=\"https:\/\/www.homelight.com\/blog\/comps-for-my-house\/\">comparable nearby properties (comps)<\/a> and information about the home to help the appraisal equate to the sales price.<br \/>\n\u201cIt doesn\u2019t happen very often with our team that we get a low appraisal because we do everything we can ahead of time,\u201d Christman comments. \u201cLike we provide feature lists to make sure the appraiser doesn\u2019t miss anything and we provide the best comps that we can.\u201d<\/p>\n<ul>\n<li><strong>Holding open houses and conducting tours<\/strong><\/li>\n<\/ul>\n<p>Touring your home to strangers can be tougher on your emotions than you might think. That\u2019s why seller\u2019s agents are professionally trained in how to vet buyers, <a href=\"https:\/\/www.homelight.com\/blog\/what-is-an-open-house\/\">host open houses<\/a>, and conduct tours of your home.<\/p>\n<ul>\n<li><strong>Reviewing offers<\/strong><\/li>\n<\/ul>\n<p>At the end of the sale process, the seller\u2019s agent helps you go through all of your offers. They can help you <a href=\"https:\/\/www.homelight.com\/blog\/how-to-negotiate-when-selling-a-house\/\">negotiate with buyers<\/a> and will communicate with the buyer\u2019s agent directly. In a seller\u2019s market, sellers will most likely <a href=\"https:\/\/www.homelight.com\/blog\/multiple-offers-on-house\/\">receive multiple offers<\/a>, and you\u2019ll want to be sure to pick the right one.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A top-performing agent explains what a real estate commission is and reveals five commission myths that often confuse first-time home sellers.<\/p>\n","protected":false},"author":262,"featured_media":51599,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"cybocfi_hide_featured_image":"","footnotes":""},"categories":[319,238],"tags":[764],"class_list":["post-28890","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-selling-advice","category-working-with-agents","tag-how-real-estate-agent-commissions-work"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.0 (Yoast SEO v27.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>What Is a Real Estate Commission?<\/title>\n<meta name=\"description\" content=\"A top-performing agent explains what a real estate commission is and reveals five commission myths that often confuse first-time home sellers.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.homelight.com\/blog\/what-is-a-real-estate-commission\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What Is a Real Estate Commission? 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